Reviewing Black Diamond Therapeutics (NASDAQ:BDTX) and Cardiol Therapeutics (NASDAQ:CRDL)

Black Diamond Therapeutics (NASDAQ:BDTX) and Cardiol Therapeutics (NASDAQ:CRDL) are both small-cap medical companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

Black Diamond Therapeutics has a beta of 2.49, indicating that its stock price is 149% more volatile than the S&P 500. Comparatively, Cardiol Therapeutics has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Profitability

This table compares Black Diamond Therapeutics and Cardiol Therapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Black Diamond Therapeutics	N/A	-68.08%	-49.65%
Cardiol Therapeutics	N/A	-194.40%	-129.07%

Insider and Institutional Ownership

95.5% of Black Diamond Therapeutics shares are owned by institutional investors. Comparatively, 12.5% of Cardiol Therapeutics shares are owned by institutional investors. 8.9% of Black Diamond Therapeutics shares are owned by company insiders. Comparatively, 5.3% of Cardiol Therapeutics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Black Diamond Therapeutics and Cardiol Therapeutics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Black Diamond Therapeutics	0	0	4	0	3.00
Cardiol Therapeutics	0	0	4	1	3.20

Black Diamond Therapeutics currently has a consensus price target of $15.50, indicating a potential upside of 703.11%. Cardiol Therapeutics has a consensus price target of $8.75, indicating a potential upside of 583.59%. Given Black Diamond Therapeutics’ higher probable upside, analysts clearly believe Black Diamond Therapeutics is more favorable than Cardiol Therapeutics.

Earnings & Valuation

This table compares Black Diamond Therapeutics and Cardiol Therapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Black Diamond Therapeutics	N/A	N/A	-$82.44 million	($1.33)	-1.45
Cardiol Therapeutics	$60,000.00	1,743.00	-$20.84 million	($0.39)	-3.28

Cardiol Therapeutics has higher revenue and earnings than Black Diamond Therapeutics. Cardiol Therapeutics is trading at a lower price-to-earnings ratio than Black Diamond Therapeutics, indicating that it is currently the more affordable of the two stocks.

Summary

Black Diamond Therapeutics beats Cardiol Therapeutics on 7 of the 12 factors compared between the two stocks.

About Black Diamond Therapeutics

Black Diamond Therapeutics, Inc., a clinical-stage oncology medicine company, focuses on the discovery and development of MasterKey therapies for patients with genetically defined tumors. The company's lead product candidate is BDTX-1535, a brain-penetrant epidermal growth factor receptor MasterKey inhibitor, which is in phase 2 clinical trial for the treatment of epidermal growth factor receptor mutant non-small cell lung cancer, as well as phase 1 clinical trial to treat glioblastoma. It is also developing BDTX-4933, a brain-penetrant RAF MasterKey inhibitor targeting KRAS, NRAS, and BRAF alterations in solid tumors that is in phase 1 clinical trial. In addition, the company is developing BDTX-4876, a MasterKey inhibitor of oncogenic FGFR2/3 mutations with selectivity versus FGFR1/4, which is in preclinical stage. The company was formerly known as ASET Therapeutics, Inc. and changed its name to Black Diamond Therapeutics, Inc. in January 2018. Black Diamond Therapeutics, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.

About Cardiol Therapeutics

Cardiol Therapeutics Inc., a clinical-stage life sciences company, focuses on the research and development of anti-fibrotic and anti-inflammatory therapies for the treatment of heart diseases. Its lead product CardiolRx, which is in Phase II multi-national, randomized, double-blind, and placebo-controlled study to evaluate the efficacy and safety of CardiolRx in acute myocarditis, as well as for the treatment of recurrent pericarditis. The company is also developing CRD-38 injection for subcutaneous administration that is in preclinical development for the treatment of heart failure. It has a license agreement with Meros. The company was incorporated in 2017 and is headquartered in Oakville, Canada.